Why has the Fed launched closet-QE?

Monday, 28 October 2019

Via the excellent Damien Boey at Credit Suisse:

Ahead of this week’s Fed meeting, many commentators are now debating whether officials will deliver a hawkish cut. Money markets are suggesting that the Fed is near-certain to cut rates by 25bps (90%+ probability), with the only question being whether its forward guidance is hawkish or dovish.

Real economy

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.